Intelligent enterprise - Nordic user group

SAP S/4HANA Finance

PUBLIC
Disclaimer

This presentation outlines our general product direction and should not be relied on in making a purchase
decision. This presentation is not subject to your license agreement or any other agreement with SAP. SAP
has no obligation to pursue any course of business outlined in this presentation or to develop or release any
functionality mentioned in this presentation. This presentation and SAP's strategy and possible future
developments are subject to change and may be changed by SAP at any time for any reason without notice.
This document is provided without a warranty of any kind, either express or implied, including but not limited
to, the implied warranties of merchantability, fitness for a particular purpose, or non-infringement. SAP
assumes no responsibility for errors or omissions in this document, except if such damages were caused by
SAP intentionally or grossly negligent.

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 2

Customer
SAP S/4HANA
Enterprise Management

SAP S/4HANA
SAP S/4HANA SAP S/4HANA SOURCING & SAP S/4HANA SAP S/4HANA
FINANCE HUMAN RESOURCES PROCUREMENT SUPPLY CHAIN MANUFACTURING

The Digital Core

The Digital Core

Enterprise Management
Streamlined SAP S/4HANA
Accelerated Plan Enterprise
Optimized Management
Enhanced
Request to Core Finance
Core Human
Procure to Pay to Product Order to Cash Resources
Service

SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA SAP S/4HANA
MARKETING AND SALES SERVICE ASSET RESEARCH &
COMMERCE MANAGEMENT DEVELOPMENT

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 3

Customer
SAP S/4HANA
the guiding principles

Modern Architecture Role-based Design Smart Business

Robust and Scalable People Centric Built for Scalability,

Simple Data Structures Any Device Automation & IoT
Speed on Primary Data Browser based Cockpits with
Single source of truth Flexible Workflows Exception based Worklists
Flexible consumption Collaboration Embedded Analytics, Prediction &
Non Disruptive Journey Decision Support Simulation

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 4

Customer
 SAP S/4HANA Finance
A single source of truth for prediction, transactions and analytics in real-time

Single Source of Truth Optimized Accounting Across Your Enterprise

AR & AP General
SAP S/4HANA Finance Ledgers Ledger
Profitability

Real-time
Universal Journal data replication
Planning & Business Analytics & Risk
Consolidation Transactions Management SAP S/4HANA
Finance

Management Asset Material

SAP HANA - Single source of truth Accounting Accounting Ledger

▪ One platform for prediction, ▪ One universal journal for financial ▪ Rapid access to innovations using
transactions and analytics and management accounting centralized S/4HANA Finance
▪ Removal of data silos and batch- ▪ Automatic reconciliation ▪ Real-time data replication connects
processes ▪ On-the-fly aggregation heterogeneous landscapes
▪ Real-time analysis and drill-down ▪ Consolidated finance processes
▪ Embedded risk monitoring and controls ▪ Accelerated finance transformation
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 5
Customer
Embedded Analytics
„Insight-to-action“

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 6

Customer
Digital Technology is transforming how Business gets done
New technologies will enable finance to define its value across the enterprise
Big data
Cloud Real-time insights
Fast deployment with in-memory

Business
networks
Connecting
with partners
User
experience
Adapting to the
modern workstyle
Blockchain Transforming finance
Business
transactions organizations
of the future

Predictive and Robotics and

cognitive machine learning
Simulating business Increased efficiency
outcomes

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 7

Customer
Finance - A Comprehensive Portfolio
Covering All Business Areas Across All Roles

Finance and Risk Chief Financial Officer

Vice President, Head, Corporate Head, Finance Head, Corporate Risk, Compliance
& Audit Officer
CISO, CIO
Finance Reporting Operations Treasury

Financial Planning Accounting Finance Treasury Enterprise Risk Cybersecurity

& Analysis & Financial Close Operations Management & Compliance & Data Protection

Planning, Budgeting, Payments and Bank Enterprise Risk Access Governance and
Financial Accounting Record to Report
and Forecasting Communications Management Identity Management
Profitability and Cost Cash and Liquidity Controls and Compliance
Entity Close Order to Cash Single Sign-on
Management Management Management
Debt and Investment Automated Monitoring and
Management Reporting Corporate Close Procure to Pay Access Monitoring
Management Screening
Financial Risk Policy Lifecycle
Financial Reporting Indirect Tax Management Data Loss Prevention
Management Management
Risk Management for
Direct Tax Management Real Estate Management Audit Management
Commodities
Financial Close Travel and Expense International Trade
Treasury Governance
Governance Management Management
Financial Shared Service
Management
Financial Process
Governance

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 8

Customer
SAP S/4HANA
Continuous Accounting and Group Reporting
Cons. Calculations
Elimination
Intercompany
Traditional
Currency Final report
Group
Data upload
Reporting
Period -2 -1 +1 +3 +5 +10

Consolidation Final report

Continuous accounting calculations
(Intercompany, currency, validation, running simulations) Elimination SAP S/4HANA
Continuous
Period -2 -1 +1 +3 +5 +10
Accounting and
Group Reporting
Period end Potential time saved to
do value-added tasks

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 9

Customer
Consolidation functions available
- gradually being extended into a full-scale consolidation offering
▪ Legal consolidation following International Financial
Reporting Standards (IFRS)
▪ Transparent overview of group closing status
▪ Direct access to universal journal data subsidiaries using
S/4HANA and file upload for other data
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER
▪ Uniform analytics in SAP Fiori for local and group close
▪ Rapid consumption through preconfigured cloud
consolidation functions and built-in data model
▪ Data model extension for management consolidation
10
Customer
SAP S/4HANA
Shared Service Framework comes built-in

Shared Service Framework Shared Service Framework

SAP
SAP R/3
Legacy SAP S/4HANA
S/4HANA System

Option 1: Shared Service Framework

in classical side car deployment Option 2: Shared Service Framework as S/4HANA add-on*
▪ Harmonized Objects (Business Partners, Orgmodel..)
▪ No data replication
▪ Dramatically reduced complexity
▪ Significantly reduced Total Cost of Ownership

*Functional Scope differs from CRM Version

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 11
Customer
SAP S/4HANA
Fully integrated Receivables Management Processes - Machine Learning relevant

Sales and Goods

Distribution Sales Order Delivery Billing
Issue

Credit Billing and E- Collections Dispute

Receivables Management Mgmt. Invoicing* Mgmt. Mgmt.

Accounting
General
FI-AR
Ledger

Machine Learning SAP Cash Application*

Bank
Cash
Treasury Communication
Management*
Management
© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER *Additional licenses required 12
Customer
SAP S/4HANA Machine Learning
Example: More Efficient GR/IR Clearing - with Analytics, Assistance and ML

Business Benefits

▪ Intelligent recommendations simplify

and accelerate the reconciliation
process

▪ Fewer human interactions reduce the

effort for non-value adding activities

▪ ML learns from the accountant’s

decisions

▪ Reduction of open items

▪ Faster period end closing with higher
precision (write-offs)

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 13

Customer
Goods Receipt and Invoice Receipt Clearing

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 14

Customer
Receivables Management

© 2018 SAP SE or an SAP affiliate company. All rights reserved. ǀ CUSTOMER 15

Customer